Their income does not get reported on your return. Your dependent can file his or her own tax return and receive a refund of their tax paid. Prepare a return in his or her name, indicating that he or she can be claimed as a dependent on someone else's return.
Dependents
must file a return if they have more than $6,300 earned (or more than $1,050 unearned) or more than $400 of self-employment earnings. But even if they have less than that in earned income, it is beneficial for the child to file a return to get a refund of their federal withholdings.
